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Conversion therapy penetrated the national consciousness last year when former Republican presidential candidate Michele Bachmann was questioned over whether the Christian counseling business of her husband provided therapies that attempted to change gays and lesbians.
Last month, psychiatrist Bob Spitzer retracted his widely-cited 2001 study that found that "highly motivated" people could change their sexual orientation, and apologized to the gay community.
The measure would likely face legal challenges from opponents who say it is unconstitutional.
Lieu says he addressed free speech issues by excluding clergy from the legislation.
Gay rights advocates say such a ban would constitute a major milestone, and could lead to similar legislation across the country.
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